Mining slowdown sparks 'conservative' economic climate

Regional Western Australia's business lobby says WA is experiencing a very "conservative" economic environment, as the mining sector continues to correct itself.

NAB's latest monthly business survey suggests WA has the country's weakest business conditions, as the slowdown in mining investment impacts the wider economy.

The survey shows nationwide, business confidence dropped to an eight-month low, with the mining sector reporting the lowest sentiment of all business sectors.

Hugh Gallagher from the Regional Chamber of Commerce and Industries WA says until mining costs are back under control, rural businesses will be affected.

"We will notice job vacancies that are not being advertised," he said.

"I think most businesses are being very, very careful with what they're doing with any spend whatsoever.

"It's particularly noticeable for consideration for say a capital purchase of new vehicles or new anything really.

"I think the way we're feeling it is that if they can get away with what they've got or they can repair what they've got, if it needs to be repaired then maybe they'll put off for a while purchasing something new.

"It's a very conservative economic environment that we're in at the moment."